HMI - Why China's Fitbit Is Losing Its Mojo
Huami (NYSE: HMI), the Chinese wearables maker that produces Xiaomi's (OTC: XIACF) devices, Timex devices, and its own Amazfit products, recently turned in a mixed second-quarter report.
Its revenue rose 9% annually to 1.14 billion yuan ($161 million), which marked its slowest growth rate since its IPO two years ago and missed estimates by $2.4 million. Its adjusted net income dropped 83% to 19.1 million yuan ($2.7 million), or $0.04 per ADS, but still met expectations.
I once declared Huami had a "much brighter future" than Fitbit (NYSE: FIT), which lost more than 80% of its value over the past five years as it ceded the market to its competitors. Huami's support from Xiaomi, which owns a major stake in the company, also enabled it to stay profitable as Fitbit drowned in red ink.